Europe managed to bring down gas prices – measures taken at the level of the European Union led to the fact that stock quotes for gas fell to two-month lows, although they remain at a level that is 7 times higher than last year. Writes about this agency Bloomberg.
During trading on Monday, gas prices in the largest gas hub in Europe fell by 8.8%, the price fell below $ 1,800 per thousand cubic meters of gas, the last time prices were at such a level in July. The reason for the reduction was the actions announced by the European Union: we are talking about reducing energy consumption during peak hours, a sharp increase in LNG supplies, as well as financial measures: taxes on excess profits of energy companies and the redistribution of these funds in favor of affected industries and households.
“European energy markets have begun to improve over the past three weeks as policies take shape and more evidence emerges of a price-driven demand response,” Timera Energy analysts said.
Fiscal measures should help the EU raise an additional €140 billion, the money will go to compensation and benefits. The launch of the LNG terminal in Emshaven also has a positive effect on the market, which significantly expands the ability of Europe to receive volumes of imported liquefied gas. Another positive is the measures taken by Germany, France and Great Britain in relation to national energy markets.
Last week, Germany took control of the assets of the Russian state company Rosneft, which accounts for up to 12% of oil refining in the country. The German government is also considering the possibility of nationalizing the country's largest gas companies, including Uniper and VNG AG, which have suffered due to the cessation of gas supplies from Russia. The UK authorities intend to carry out similar measures and have prepared a plan worth £40 million (about €46 billion). France is also pursuing its own plan, which includes capping household electricity prices at a cost of €16 billion to the French budget.
However, the agency notes that the current decline in prices is only a respite from the new problems of the European Union. Analysts believe that the political bloc will face a recession caused by high energy prices. Moreover, with the approach of the heating season, the problems will only increase, even despite the record volumes of gas accumulated in underground storage facilities.
Representatives of the American oil and gas industry have previously noted that the US's ability to help Europe get through the heating season is almost at its limit and it is not worth expecting an increase in supplies this winter. Analysts note that if the status quo is maintained, Europe will be able to get through a warm winter relatively painlessly, but in case of low temperatures it will have problems.
